ECB Emergency Bond-Buying Program Awaits Final Details to Start

(Bloomberg) --

The European Central Bank is finalizing the details that would allow it to start buying bonds under its emergency 750 billion-euro program ($800 billion) to tackle the impact of the coronavirus pandemic, according to people familiar with the matter.

While the Pandemic Emergency Purchase Program will begin soon, officials need some time to work out aspects of its implementation, the people said, asking not to be identified as such market operations are confidential. An ECB spokesman declined to comment.

Despite the lack of action, bonds have surged since late Wednesday when the ECB announced the liquidity injection. Yields in Italy, the worst-hit by the virus, and Greece, which will be included in the ECB’s quantitative easing for the first time, have seen especially steep drops.

Buying of Greek debt hasn’t yet started, the people said. The Bank of Italy said purchases of Italian debt are under way, but under existing programs.

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